Launch Finance recently assisted a client in extending their purchase contract deadline and securing a loan with a non-major lender, after the client struggled to find a mainstream lender because of unusual savings activity. The client had been putting their savings into a share portfolio, rather than a standard account, making it difficult to prove genuine savings.
The client in question had originally purchased a property without seeking the help of a broker. They had spoken directly to the bank about their borrowing capacity but hadn’t discussed their savings history with the lender.
When it came time to apply for the loan, following the purchase of the property, the client had an issue with their current bank not being able to approve the loan within the time frames of the contract to purchase. The issue was that the client was putting savings into their share portfolio, which was not allowed by the current lender.
When approached by the client to assist, the first thing we did was negotiate an extension with the real estate agent to allow us enough time to get the required finance approved. We mapped out a plan to the real estate agent that showed there was a high chance of a positive outcome if the extension was granted.
Our Launch Finance brokers then looked at the lenders available for this unique savings situation. The issue was around displaying genuine savings so we had to go to a lender that thought outside of the box. We utilised a genuine policy rule, which allowed the client to use shares instead of cash in a traditional bank account, which was not available through all lenders.
Through our wide network of lenders, we were able to assist the client in extending their purchase contract, showing savings through their share portfolio and accessing a better overall product by going direct to one lender.